From a customer perspective, a value-added cost is one:
A) which increases the value of the product to the customer.
B) which the firm has determined is essential in the production of the product.
C) on which the firm must focus.
D) which increases the value of the product to the customer and the customer is prepared to pay for the added value.

Question

Quizplus · Accepted Answer

A value-added cost is one that increases the value of the product to the customer and the customer is prepared to pay for the added value. This means that the cost is not only beneficial to the firm but also to the customer, as it enhances the product's quality or functionality. Therefore, the firm can charge more for the product while still satisfying the customer's needs and expectations.

From a Customer Perspective, a Value-Added Cost Is One